Vodafone Zambia put up for sale

20 September 2019

Mergers, Acquisitions and Financial Results

Amid continuing financial struggles, Mobile Broadband Limited, which trades under the Vodafone Zambia banner, has formally announced that the company is to be sold, after its current shareholders failed to recapitalise the operator, according to ITWeb Africa. With Vodafone Zambia understood to have struggled financially within only a year of its launch in 2016, the company issued a statement in July this year announcing that a delay in recapitalising had resulted in network outages in Lusaka and the Copperbelt region. The situation triggered a petition by employees to the High Court in Lusaka for business rescue, which led to the appointment of a business rescue administrator, Luwita Sayila, as Vodafone Zambia began the process of attempting to acquire new shareholders. Subsequently, a business rescue plan was implemented with a view to covering the comprehensive restructuring of the operator’s affairs, including business, property, debt and other liabilities, and equity. However, Sayila has now reportedly issued a notice inviting bids to secure new ownership, saying interested bidders can currently acquire bidding documents upon payment of a non-refundable fee of USD760, with any bids due by a deadline of 27 September 2019. An excerpt from the sale notice confirmed: ‘Mobile Broadband Limited hereby invites interested parties to participate in the open bidding tender for the sale of the company. Mobile Broadband Limited reserves the right to reject any and all bids, declare a failure of bidding or not award the contract at any time prior to contract award.’

Source: Telegeography